OLIGOPOLY 0 opolistic industries are characterized by: a few dominant firms and
ID: 1120512 • Letter: O
Question
OLIGOPOLY 0 opolistic industries are characterized by: a few dominant firms and independent decision making. a large number of firms and independent decision making. a few dominant firms and interdependent decision making. a. e number of firms and interdependent decision making. d. a larg nthe market price and output will be very close to the price and output that would b the market price is likely to be higher and the output is likely to be lower than in an oligopoly market are able to collude, then: a. prevail under competitive conditions. they would be if firms could not collude all firms in the market will increase output in order to increase profit. they are not attempting to maximize profit. c. d. Once a cartel has successfully achieved a price and output level similar to what would prevail in a monopolized market, some members have an incentive to cheat by a. cutting back production, which causes the market price to fall. b. cutting back production, which causes the market price to rise. c. increasing production, which causes the market price to fall. d. increasing production, which causes the market price to rise. 3. The Kinked-Demand model is based on the notion that an oligopoly firm assumes rival firms will: a. match price increases but ignore price decreases. b. match both price increases and price decreases. c. ignore price increases but match price decreases. d. ignore both price increases and price decreases. 4. 5. Game theory assumes that: a. firms anticipate rival firms' decisions when they make their own decisions. b. firms ignore rival firms' decisions when they make their own decisions. c. markets are contestable because there are no barriers to entry. d. a firm will always follow the pricing strategy of the dominant firm in the industry . why firms in oligopoly markets always earn maximum profit o. why firms don't advertise if they operate in oligopoly markets C. the strategic behavior of firms in oligopoly markets. d. hiring behavior in professional sports 6. Game theory helps explain: Chapter 14 Assignments 303Explanation / Answer
1.
c a few dominant firms and interdependent decision making
the above is the answer
2.
b. market price is likely to be higher and the output is likely to be lower than they would be if the firms could not collude
the above is the answer
3.
c. increasing production, which cause the market price to fall
the above is the answer
4.
c. ignore price increases but match price decreases
the above is the answer
5.
a. firms anticipate rival firms' decisions when they make their own decisions
the above is the answer
6.
c. the strategic behavior of firms in oligopoly markets
the above are the answers
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